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Avoiding Probate In Minnesota

When someone passes away, their property goes through probate. This is the legal process of transferring the contents of the estate to the beneficiaries, helping to settle the estate. It involves numerous steps, such as inventorying assets, paying debts and dividing those assets among the beneficiaries.

However, probate can be a time-consuming process, often taking months and sometimes even years. Many people are interested in avoiding probate, which is possible when working with an experienced probate attorney. Here at Gries Lenhardt Allen, P.L.L.P., our lawyers understand that a one-size-fits-all approach does not work for estate planning matters. We work closely with our clients to create proper estate plans, often exploring ways to avoid probate entirely.

Understanding Probate Avoidance in Minnesota

Before exploring strategies for avoiding probate, it’s crucial to understand the process and its potential drawbacks. Probate is the legal process of transferring the assets of a deceased person to their beneficiaries. While it’s a necessary process, it can be lengthy, costly, and public. By avoiding probate, individuals can:

  • Reduce the time and complexity of the estate settlement process
  • Minimize the potential for disputes and challenges among beneficiaries
  • Keep your estate plan private, rather than making it a matter of public record

Strategies for Avoiding Probate in Minnesota

So, how can you avoid probate in Minnesota? Here are a few strategies to consider:

Joint Ownership

One way to avoid probate is to use joint ownership, especially for real estate. For instance, a parent may jointly own a home with their adult child so that when they pass away, the adult immediately becomes the property owner. There is no need for the property to change hands since the adult child is already the owner of the property.

Another benefit is that there is no way for someone else to dispute this ownership. When assets pass through probate or even when they are included in a will, challenges sometimes arise. Other beneficiaries may dispute a will and similar estate planning documents, complicating the transfer. But joint ownership makes this type of dispute impossible before the person “receiving” the real estate owned it already.

Payable-On-Death (POD) Accounts

Another tactic is to set up financial accounts with beneficiary designations, making them payable-on-death (POD) accounts. These accounts avoid probate because the beneficiary automatically becomes the account holder when proof of death is provided.

For instance, a savings account could have an added beneficiary designation. Not only does this avoid probate—and the potential for a dispute or challenge—but the new account holder can often take over much more quickly, perhaps in just a matter of days. This is a tactic that can be used to leave family members money they can quickly access for funeral or burial costs.

Transfers Before Death

Another option is to give financial gifts or transfer property in advance. This can be especially beneficial for large estates, as spending down the estate by transferring assets beforehand can help reduce the tax burden beneficiaries may otherwise face.

Beneficiary Designations

Finally, some assets can naturally bypass probate. For example, a life insurance policy with a beneficiary designation ensures that the designated individuals receive the payout directly from the insurance company. Since the payout is not included in the estate, it avoids probate altogether. Even if the estate plan mentions the life insurance policy, the beneficiary designation takes precedence.

*NOTE: These are just a few examples of tactics our attorneys can help you explore, as every case is unique.

Call Now For A Consultation

Don’t let the complexity of probate hold you back from creating a comprehensive estate plan. Contact us today via our online contact form or call us at 612-568-0023 to schedule a consultation with one of our experienced probate attorneys.